The shares gained as much as 5.3 percent to 10 euro cents
in Lisbon trading, the highest level in three weeks. They
climbed 2.1 percent to 9.7 euro cents at 9:26 a.m., giving the
firm a market value of 1.9 billion euros ($2.5 billion).

The sale of Millenium Bank Greece represents a “relevant
improvement in the group’s risk profile, as it reduces
significantly the bank’s exposure to one of the most problematic
economies in its business portfolio,” Carlos Peixoto, an
analyst at Banco BPI (BPI) in Porto, said in an e-mailed report to
clients today. It is also a “first step toward increasing
visibility regarding BCP’s capacity to redeem” state aid by
June 2017, he said.

Banco Comercial will sell Millenium Bank Greece for 1
million euros and also agreed to invest 400 million euros in
Piraeus’s forthcoming capital increase as a condition of the
sale, leading to a minority stake in Piraeus, Millenium said in
an e-mailed statement today. The transactions are expected to be
completed in the second quarter, it said. Banco Comercial can’t
sell its minority stake for six months.

Banco Comercial has booked a provision of 427 million euros
for the potential losses in Millenium, according to the
statement. The sale will allow Banco Comercial to
“deconsolidate about 4 billion euros in risk weighted assets”
as of December, it said.